Lower home prices and stable interest rates made it easier to buy a home in most Canadian markets in February. The national average price dipped 1.2% from January, bringing modest relief to stretched budgets. Every month, we crunch the numbers across 13 major Canadian cities to answer one question: Is it getting easier or harder to buy a home? In February, it got easier in 12 of 13 cities we track. The Big Picture Metric February Value Change National Avg. Price $676,640 -1.2% MoM Year-Over-Year — -3.4% Home Sales 32,180 -1.3% MoM 5-Year Fixed Rate 3.94% — Stress Test Rate 5.25% — Interest Rate Context The Bank of Canada held its overnight rate at 4.45% prime in its latest announcement. The next decision is April 29, 2026. Fixed rates remain driven by bond yields, which have been volatile due to global trade tensions and the ongoing Iran conflict. Current best rates: 5-year fixed at 3.94%, 5-year variable at 3.50%. Remember: affordability isn't just about home prices. It's a three-legged stool — prices, rates, and income. When any one moves, the math changes. City-by-City Breakdown Here's how affordability shifted in Canada's major markets: City Avg. Price Monthly Change Income Needed Affordability Toronto $1,067,900 -1.8% $198,400 ✅ Improved Vancouver $1,156,200 -0.9% $213,800 ✅ Improved Calgary $582,400 +0.4% $112,600 ❌ Worsened Ottawa $634,500 -1.1% $122,400 ✅ Improved Montreal $548,300 -0.6% $106,200 ✅ Improved Edmonton $392,100 -0.3% $78,400 ✅ Improved Hamilton $782,600 -2.1% $148,900 ✅ Improved Victoria $862,400 -0.7% $162,100 ✅ Improved Winnipeg $358,200 -0.4% $72,100 ✅ Improved Halifax $482,300 -0.8% $94,200 ✅ Improved Saskatoon $342,800 -0.2% $69,400 ✅ Improved Regina $318,500 -0.5% $65,100 ✅ Improved St. John's $298,400 +0.3% $61,200 ❌ Worsened Toronto Average price: $1,067,900 (-1.8% MoM) Income required to qualify: $198,400 (-$3,600) Condo prices dropped 3.2% — the sharpest monthly decline since mid-2024. Vancouver Average price: $1,156,200 (-0.9% MoM) Income required to qualify: $213,800 (-$1,900) Detached homes continue to soften while townhomes hold steady. Calgary Average price: $582,400 (+0.4% MoM) Income required to qualify: $112,600 (+$800) The only major city where affordability worsened — driven by strong interprovincial migration. Ottawa Average price: $634,500 (-1.1% MoM) Income required to qualify: $122,400 (-$1,400) Public sector hiring freeze is cooling demand in the capital. Montreal Average price: $548,300 (-0.6% MoM) Income required to qualify: $106,200 (-$800) Still the most affordable major metro — median household income covers the qualifying threshold. Edmonton Average price: $392,100 (-0.3% MoM) Income required to qualify: $78,400 (-$400) Remains one of Canada's most buyer-friendly markets. Hamilton Average price: $782,600 (-2.1% MoM) Income required to qualify: $148,900 (-$4,100) Biggest affordability improvement this month — inventory is finally building. Victoria Average price: $862,400 (-0.7% MoM) Income required to qualify: $162,100 (-$1,200) Gradual softening continues as retiree demand slows. Winnipeg Average price: $358,200 (-0.4% MoM) Income required to qualify: $72,100 (-$500) Consistently one of the most affordable cities — first-time buyers can qualify on a single income. Halifax Average price: $482,300 (-0.8% MoM) Income required to qualify: $94,200 (-$1,100) Atlantic Canada's largest city saw prices ease after two years of rapid growth. Saskatoon Average price: $342,800 (-0.2% MoM) Income required to qualify: $69,400 (-$300) Flat but affordable — a stable entry point for Prairie buyers. Regina Average price: $318,500 (-0.5% MoM) Income required to qualify: $65,100 (-$600) The lowest qualifying income of any tracked city at just $65K household. St. John's Average price: $298,400 (+0.3% MoM) Income required to qualify: $61,200 (+$200) Slight uptick driven by limited inventory rather than demand pressure. What This Means for You If You're Buying If you've been waiting on the sidelines, February's data suggests the window is opening — especially in Toronto and Hamilton where prices are softening faster than the national average. The income needed to qualify is based on the stress test rate — the higher of the Bank of Canada's benchmark rate (5.25%) or your contract rate + 2%. So even though real rates are around 3.94%, you need to qualify at the higher threshold. If You're Selling Pricing realistically is key. Overpriced listings are sitting, and buyers have more negotiating leverage than they've had in years. If You're Renewing With rates stable, this is a solid time to lock in your renewal. A 120-day rate hold protects you while you shop around. How We Calculate Affordability Our affordability metric measures the minimum household income needed to qualify for a mortgage on the average-priced home in each city. We use: The current 5-year fixed rate (3.94%) The stress test rate (5.25%) 25-year amortization 20% down payment Standard GDS/TDS ratios (39%/44%) When the income required drops, affordability improves. When it rises, it gets harder to qualify. What's Next? We publish this report every month. Bookmark this page or subscribe to our newsletter to get the next one delivered to your inbox. The next Bank of Canada rate announcement on April 29, 2026 could shift the picture — follow our BoC Rate Decision coverage for real-time analysis. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions What's Next? We publish this report every month. Bookmark this page or subscribe to our newsletter to get the next one delivered to your inbox. The next Bank of Canada rate announcement on April 29, 2026 could shift the picture — follow our BoC Rate Decision coverage for real-time analysis.
